Toys R Us had been driving its response business from the program level rather than the customer. I saw a tremendous opportunity to grow sales and bottomline by introducing an RFM segmentation and propensity modeling program. The RFM test programs delivered increment 640% lift in response and +6M in incremental profit. It was a huge win for the company

1. 1
1
APPROACH TO CRM
CRM VISION
CRM Strategy Planning Meeting
February 2008
Prepared by:
Barbara Canning Brown

2. 2
CHARLES APPROACH TO CRM
ACCOUNTABILITY
Success Metrics
Forecast/Bus Case
Reporting Results
Optimization
PROGRAM FRAMEWORK
Program framework
Messaging Architecture
Acq / RM / Media Plan
Contact/RM Plan
Web Experience
Creative Execution
DATA STRATEGY
Data Capture
Survey Questions
Profiling
Golden Questions
Decisioning/Triggers
Analytics design
INSIGHTS & PLANNING
Goals / Requirements
Insights - Brand/Target
Communications Strategy
Conceptual Creative
DATA OPPS
Business Rules
Database Architecture
DB Vendor Integration
DB Vendor Stewardship
Call Center
TECHNOLOGY
Siebel, Email Dashboard, Campaign Management, Reporting

3. 3
CRM VISION
One To Many One To Select Groups One To One
Opt-In
Broad targeting
Mass advertising
Product/promotion driven
Personalized
Segmented targeting
Customized communications
Category/product usage driven
CRM - individualized
Individual targeting
Personalized communications
and experiences
Behavior/value driven

4. 4
PROGRESSIVE DATA STRATEGY
Preferenc
e
Data
OfferRecord Content
Newslette
r
Opt-In
Account
Set-Up
Last
Name
Child
Or HH Size
Postal
Address
First
Name
Zip Code
Email
Address
Opt-In/
Opt-Out
Pass
word
Content
(Newsletter)
Selection
Trigger Streams, Offers
& Pathways
Customer
Behaviors
Customer
Segment
Copy/Offer
Pathways
Segments
ShoppingOccasions
Shopping
Occasion
Tools Investment
Customer
ROI
Measure
PurchaseTransactions
Profile Segmentation & Behavior Value

5. GROUNDED IN RFM BUT BUILT THROUGH LIFECYCLE

6. 6
AND ENHANCED THROUGH DEMOGRAPHICS
Brenda &
Brendan
Isabelle
& Ian
Brand Inspirationals Intelligent Buyers
“Save me so much
money I won’t be
able to stay
away”
“Help me trade
down and trade
up”
Penny
Price/Value
“Help me
make it to my
next
paycheck”
Survey 1: Segmentation
(Golden questions that will help us identify your segments)
1. Freq of shop
2. Who shopping for at TRU
3. Degree enjoy / dislike shopping TRU
4. Indicates what smart means to them
5. Categories shopped/not shopped
Survey 2: Shopping Occasion
• Series of shopping occasion questions
Survey 3: Segmentation
• Re-Qualification
Seasonal Poll
• Question feeds relevant editorial and promotion

7. 7
BY BUILDING INDIVIDUAL PROFILES
Opt-In & Account Setup
Brenda
Opt-in
11554 (East Meadow, New York)
Chose bi-weekly communications
Account Profile &
Preferences
Apparel
Baby
Toys
Children
Site Interaction
Behaviors
Online gift registry
Online birthday club
Segment
Brand Aspirational
Shops 43 times a years
Shops for family
Shops BRU and specialty stores
Identified as “helps me trade down and trade up”
Shopped Toys, apparel, but not electronics.
Category DNS Shopped food, apparel, but not electronics
Shopping Occasion
Growing out of clothes
Special occasion
Special item mission
Shops weekends
Customer Value Medium value, high potential.

8. 8
BASED IN ECONOMICALLY VIABLE SEGMENTS
Complete
profile
Opt-in
Maintain
spending
Keep profile up to date
Increase cross-category
spending
Make one
transaction
DEEPER
CUSTOMER
INFORMATION
INDIVIDUAL
BEHAVIOR
CHANGE
Segmentation = Profitable management of individual relationships
?

9. 9
AND WHILE PROGRAMS ARE ABOUT FILLING NEEDS
Needs
Price / Value
Save me so much I won’t
be able to stay away.
Help me trade down
to trade up.
Help me make it from
paycheck to paycheck.
Shopping
Help me make
smarter choices.
Give me smart brand choices.
Give me everyday value and a
good shopping experience.
Living Make my lifestyle less wasteful. Make my life richer and easier. Bring my family together.
Brand Aspirational Price/Value ShopperPrice-Sensitive Affluents

10. 10
ENGAGEMENT IS REQUIRED TO BUILD LONG TERM VALUE
A dynamic customer grooming program that deepens customer relationships via
more targeted and relevant cross-category presentation. The program . . .
Facilitates discovery of new categories and helps them find the brands they like
Optimizes the time they spend shopping online and in-store
Helps transform the personal standards
The result is that shopping at Toys R US makes the brand synonymous with shopping
smart and living better.

11. 11
AND A FAIR EXCHANGE OF VALUE IS NOT NEGOTIABLE
Toys R US Consumer
Emotional resonance Inspiration
Cross-category shopping Navigation
Engagement Relevant Education & Support

12. 12
PROGRAM COMPONENTS
Shop Smarter
Live Better
Category-Focused Featured Brands Product Promotions
Lifestage Events
Advanced Notice
Of Product
Availability
Promotion of New
In-Store Amenities
EQUITYPROMOTION
Transform
Living Standards

13. 13
ILLUSTRATIVE EXAMPLES
Shop Smarter
Live Better
Children’s Fashion Week
Baby Care Classes
Coalition Strategy Expand GBC
On-site Baby
Advice
In-store Moving
Checklist
Spring Cleaning
Day
Memorial Day
Tailgate
Preview Nights
Inventory News
Product
Launches
Designated
Parking
Extended Hours
Complimentary
Snacks
EQUITYPROMOTION
Trade-Up
Program
Charity
Donations

14. 14
ILLUSTRATIVE TACTICS
Shop Smarter
Live Better
Electronic Shopping Guides
An evolution of the weekly circular. Modeled on electronic programming guides.
Versioned geographically to tell you what’s going on in your store, aisle by aisle.
Richer profile data helps highlight the aisles you enjoy most, as well as smart cross-aisle visits.
eMerchandise Circles
A new twist on group purchasing. Third-party content & user-generated content tools integrated
into online catalogues, surrounding merchandise to connecting consumers and drive
purchases.
EQUITYPROMOTION
Dynamic Planning & Shopping Tools

15. 15
INDIVIDUAL PROFILES
Opt-In & Account Setup
Brenda
Opt-in
11554 (East Meadow, New York)
Chose bi-weekly communications
Account Profile &
Preferences
Apparel
Baby
Toys
Children
Site Interaction
Behaviors
Online gift registry
Online birthday club
Segment
Brand Aspirational
Shops 43 times a years
Shops for family
Shops BRU and specialty stores
Identified as “helps me trade down and trade up”
Shopped Toys, apparel, but not electronics.
Category DNS Shopped food, apparel, but not electronics
Shopping Occasion
Growing out of clothes
Special occasion
Special item mission
Shops weekends
Customer Value Medium value, high potential.

16. 16
Q: If your child is going off to school this fall…please tell us how you’re feeling about it (rank in
order of importance)
(a) a bit anxious about doing/getting things right
(b) confident and optimistic for my child
(c) shopping for BTS is a chore
(d) heading BTS is another annual milestone to celebrate
(e) anxious about the cost and expense
EXPERIENCE COMMUNICATIONS
“Equity” Email (Monthly) “Promotional” Email (Wkly-Bi-Wkly)
THEME: FALL
ElectronicsBack-To-School
Jul/Aug 2008 Oct 2008BI-WEEKLY PROMOBrenda
Shops for family
1 Child 11 yrs
DNS: Electronic
Shops Weekends

17. 17
TRANSFERS FROM STREAM TO STREAM
% conversion from one stream to the
next
SUCCESS METRICS
Opt-ins
Conversion Rate
Opt-outs
% of total registrants
Offer Response, e.g.Coupons printed,
redeemed
Email Response – open, click, unsubscribe
Newsletter Interactions
Conversion of non-customers to customers –
offer redemption and re-qualification
Cross-sell/Upsell response among customers
Purchases
Retention Rate - % 12-month active opt-ins
Program Site Interactions
Wish List completes
Registry set ups
Downloads
Sharing
etc.
Return Visits
# of Log Ins
RECRUITMENT RELATIONSHIP MANAGEMENT
WEBSITE ENGAGEMENT

18. DISCUSSION